The Asian Economist

The $700 Billion bailout plan has been passed  by the senate and house of representative in Washington DC. That is great news for American. Over across the Pacific ocean however, the Asian market is still pessimistic about the bailout plan. Today, Oct. 4, the Asian market posted the biggest weekly drop in 13 months. That is not a very good sign for the global economy.

“Investors are worried that economic conditions and earnings will still deteriorate even with this rescue plan,” said Masaru Hamasaki, a senior strategist at Toyota Asset Management Co. in Tokyo, which manages $3.3 billion. “The weakening global demand is becoming more of a concern to many investors.”-Bloomberg.com

The Chinese government on the other hand is very please that the bailout bill was passed. Prime Minster Wen Jiabao stated,”We’re happy to see the bailout passage, all countries should take the responsibility to cooperate, as we share the same interest and goal in facing this crisis.’ Wen Jiabao.

Now that the bailout has been passed, the world will have to wait and see how the market will react to this news. Even though America is the center of attention, the Dow Jones lost this year was only 9.11% compare to the HANG SENG INDEX which is down 35.84% this year alone.

In America, the S&P 500 went down 22.13% in this year but the Shanghai Composite went down 56.404%. The financial crisis is not just happening in the United States. It is affecting everyone around the world and the countries in Asia are not excluded.